© Reuters. Traders work on the trading floor of the New York Stock Exchange (NYSE) in New York, USA 03/23/2023 REUTERS/Brendan McDermid
Por Stephen Culp
NEW YORK (Reuters) – U.S. stocks closed higher on Friday at the end of a tumultuous week after Federal Reserve (Fed) officials allayed investor fears about a possible liquidity crisis in the banking sector.
While all three major US stock indices started the session sharply lower after a sell-off in European bank stocks, those losses were reversed during the trading session in a repeat of the intraday roller coaster of recent sessions.
The week was one of ups and downs in the markets, with emphasis on the increase in interest rates by the Fed and growing concerns about the health of the banking system. Still, all three major stock indexes in New York posted weekly gains.
In separate statements, three Fed members said on Friday that the decision to raise interest rates by 25 percentage points on Wednesday was based on confidence that the banking system does not face a liquidity crisis.
However, while US central bank officials continue to view further rate hikes as a strong possibility, financial markets are now favoring the likelihood of no hikes at the next policy meeting in May.
The rose 0.41% to 32,237.53 points. The rose 0.56% to 3,970.99 points. The technology index advanced 0.31% to 11,823.96 points.
Nine of the 11 major S&P 500 sectors rose. Those seen as more defensive, such as utilities and real estate, scored the biggest percentage gains. The consumer discretionary and financial sectors fell.